Deutsche takes bets on Asian monetary union

Deutsche Bank has structured an index that allows investors to profit from Asia's converging currencies.

Asia's political leaders may not have much appetite for an EU-style union, but their currencies are converging regardless as central bankers increasingly coordinate monetary policy with each other.

According to currency strategists at Deutsche Bank, this creates an opportunity for the same kinds of convergence trades that preceded European currency union û as countries move towards adopting a single currency unit, and therefore common interest-rate policy, investors can profit from betting that today's differences in yield will erode over...